Potbelly Signs Multi-Unit Development Agreement with Company Founder Bryant Keil

Rhea-AI Summary

Potbelly Corporation (NASDAQ: PBPB) finalizes a 27-shop agreement in Maryland with founder Bryant Keil and his son Hampden. The deal includes developing 15 new Potbelly shops and refranchising 12 existing locations. The agreement grants exclusive territory rights in seven Maryland counties, extending Potbelly's presence in central and southern regions of the state. This partnership aligns with Potbelly's strategic franchise and growth strategy across the U.S., aiming to reach 2,000 shops over the next 10 years.

Positive

• The agreement extends Potbelly's presence in Maryland, allowing for more access to their food in central and southern regions of the state.
• The deal includes both the development of new shops and refranchising of existing locations, reflecting a balanced approach to expansion and growth.
• The partnership with founder Bryant Keil and his son Hampden demonstrates a commitment to leveraging their deep understanding of the Potbelly brand and vision for accelerated growth.

Negative

• None.

27 Unit Deal Includes 15 New Shops and 12 Refranchised Locations in Maryland

CHICAGO, July 19, 2023 (GLOBE NEWSWIRE) -- Potbelly Corporation (NASDAQ: PBPB), the iconic neighborhood sandwich shop, today announced that it has finalized a 27-shop agreement in Maryland with the company’s founder Bryant Keil and his son Hampden.

The agreement grants Mr. Keil exclusive territory rights in seven Maryland counties – Washington, Frederick, Montgomery, Prince George, Charles, Calvert, and St. Mary’s – to develop 15 new Potbelly shops in the next eight years. Additionally, Potbelly will refranchise 12 existing restaurant locations as part of the transaction.

“The Potbelly brand we know and love was shaped by Bryant’s leadership. He has a keen understanding of the Potbelly vision and deep appreciation for the brand and what sets us apart,” said Bob Wright, President and CEO of Potbelly. “He oversaw years of incredible expansion for our brand, and we look forward to him accelerating our growth momentum in Maryland as we continue to execute our strategic franchise and growth strategy across the U.S. Along with refranchising several of our existing shops, this agreement will extend Potbelly’s presence in central and southern regions of the state over the next decade, giving residents and visitors more access to our delicious food.”

“For nearly three decades, I’ve believed in the strength of the Potbelly brand and the company’s growth potential,” said Mr. Keil. “I’m thrilled for this new partnership and the opportunity to open and operate additional shops on the East Coast. I’m especially excited to partner with my son Hampden to develop the market and our family business. He grew up in Potbelly and has significant restaurant experience. We are both very excited to join the system.”

Mr. Keil first purchased Potbelly in 1996, when it was a single antique shop in the Lincoln Park neighborhood of Chicago whose owners served sandwiches to their customers. As CEO, he leaned into the differentiated Potbelly business model – creating shops that serve delicious, craveable food in an environment prioritizing good vibes – and successfully expanded the company to 250 locations by 2008. Today, there are more than 425 Potbelly locations in cities around the U.S.

Potbelly has a long-term goal of reaching 2,000 shops over the next 10 years, with at least 85% of those locations being franchised, as part of the company’s Franchise Growth Acceleration Initiative.

You can learn more about franchise opportunities with Potbelly at https://www.potbelly.com/franchising-why-potbelly.

About Potbelly
Potbelly Corporation is a neighborhood sandwich concept that has been feeding customers’ smiles with warm, toasty sandwiches, signature salads, hand-dipped shakes and other fresh menu items, customized just the way customers want them, for more than 40 years. Potbelly promises Fresh, Fast & Friendly service in an environment that reflects the local neighborhood. Since opening its first shop in Chicago in 1977, Potbelly has expanded to neighborhoods across the country - with more than 425 shops in the United States including approximately 53 franchised shops in the United States. For more information, please visit our website at www.potbelly.com.

Forward Looking Statements
This press release may contain statements that might be considered forward-looking statements or predictions of future operations including with respect to the shop development agreement with Bryant Keil and Potbelly’s ability to successfully execute on its Franchise Growth Acceleration Initiative. Such statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on management’s belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties. Actual events may also differ from these expectations as a result of the risks identified from time to time in our filings with the Securities and Exchange Commission. We assume no duty to update these statements as of any future date.

Contact:
PotbellyPR@icrinc.com 

FAQ

What is the scope of the agreement between Potbelly Corporation and Bryant Keil?

The agreement includes developing 15 new Potbelly shops and refranchising 12 existing locations in Maryland, granting exclusive territory rights in seven Maryland counties.

How does the agreement align with Potbelly's growth strategy?

The agreement extends Potbelly's presence in central and southern regions of Maryland, supporting the company's goal of reaching 2,000 shops over the next 10 years.

Who is involved in the partnership for the Maryland market expansion?

The partnership involves Potbelly founder Bryant Keil and his son Hampden, demonstrating their commitment to accelerating growth and leveraging their understanding of the Potbelly brand.